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LONDON (Reuters) - Client demands to pull money out of hedge funds rose to their second-highest level this year in August, industry data showed, in a sign some investors may be reassessing these freewheeling portfolios after their performance failed to shine.

Hedge fund administrator SS&C GlobeOp's forward redemption indicator, a monthly snapshot of clients giving notice to withdraw their cash as a percentage of its assets under administration, measured 3.34 percent in August.

This was up from 2.18 percent in July and higher than the 2.71 percent seen a year ago, although it was still well below levels seen during the 2008 credit crisis.

Hedge funds have gained 2.88 percent in the first seven months of this year, according to Hedge Fund Research. In contrast the S&P 500, with dividends reinvested, is up 11 percent.

"Forward redemptions increased in August, which is typical as we approach quarter-end, but redemption notices remained at moderate levels, indicating continued investor satisfaction with alternatives," said Bill Stone, chairman and chief executive officer, SS&C Technologies.

The GlobeOp Forward Redemption Indicator hit an all-time high of 19.27 percent in November 2008 in the wake of the collapse of U.S. investment bank Lehman Brothers but has not risen above 10 percent since September 2009.